Talks Lift Hopes of Small Argentine Bondholders

Hedge Funds Leading the Battle for Full Repayment Aren't the Only Holdouts

By

Sara Schaefer Muñoz

Updated July 6, 2014 7:58 p.m. ET

BUENOS AIRES—Norma Lavorato worked and saved for decades, but has spent most of her twilight years waiting for the Argentine government to pay back the $45,000 she invested in sovereign bonds and lost in Argentina's massive 2001 default.

"I've had patience, a lot of patience," said Ms. Lavorato, a spry 85-year-old who turned down the small settlement offers the government made to other bondholders. "I worked for 43...